New Feature: Tax Cuts and Jobs Act
PlannerPlus now implements the tax rates and tax brackets of the Tax Cuts and Jobs Act. The toggle allows you to view your plan under the assumptions that TCJA changes that are set to expire on December 31, 2025 are instead made permanent by Congress.
What is the Tax Cuts and Jobs Act of 2017?
The Tax Cuts and Jobs Act of 2017 changed most elements of federal income taxation, most importantly federal income tax rates and tax brackets. The provisions of the Tax Cuts and Jobs Act will revert back to the pre TCJA provisions in 2026 unless Congress takes action to extend or make the changes permanent.
What are the default assumptions in My Plan?
The My Plan default settings implement the current federal income tax rates and tax brackets through your longevity age.
How do I view my plan under the assumption that the provisions of the TCJA expire on December 31, 2025?
Head over to My Plan > Assumptions and scroll down to Taxes. When you select “Change to 2017 Tax Rates,” your projections will be based upon the assumption that the federal income tax brackets and tax rates revert to the pre Tax Cuts and Jobs Act rates.
Will any other tax modeling change with this new feature?
No. Although the The Tax Cuts and Jobs Act also changed a number of provisions such as; personal exemptions, the standard deduction, capital gains tax brackets, and the SALT limit, the only change implemented in My Plan will be the federal income tax brackets and rates.
How is the tax modeling calculated?
The 2026 tax brackets are based on the 2017 brackets and inflated through 2022 based upon CPI data. After the current year, tax brackets and the standard deduction are inflated based upon the general inflation assumptions you enter and the assumptions under which you view the plan.
Where can I see the rates being applied?
You can view the tax brackets and rates in the Insights > Taxes > Net Taxable Income by Federal Tax Bracket Chart